Younger generations drive rise in nonalcoholic and cannabis drinks
U.S. consumers are drinking less alcohol, and the beverage industry is evolving to meet their changing preferences. Younger generations are leading this shift, driven by health awareness, cost concerns, and wellness goals.
According to CoBank’s Knowledge Exchange report, nonalcoholic beverages are one of the most resilient and fastest-growing segments in the market. Rising sales have prompted beverage manufacturers to innovate with drinks that deliver unique sensory experiences rather than imitations of alcoholic products.
In 2024, global wine consumption reached its lowest level since 1961, and U.S. wine demand fell by nearly 6%. Alcoholic beverage sales across all categories continued to decline in 2025. At the same time, nonalcoholic alternatives surged. Nonalcoholic beer sales rose 22%, while nonalcoholic wine posted a 41% jump in dollar sales.
“The trend toward non-alcoholic beverages and their rapid growth in sales is prompting considerable innovation in the space,” said Billy Roberts, food and beverage economist with CoBank. “Beverage producers in the consumer-packaged goods space are introducing options with novel sensory experiences that can stand on their own, rather than simply mirroring alcohol-based counterparts.”